Primark enjoyed a 3% rise in sales over Christmas, despite less discounting.
Photograph: Jill Mead for the Guardian

Primark said it gained market share, increased sales and cut down on discounting over Christmas by focusing on the high street and continuing to keep away from the internet.

Sales at the cut-price fashion chain’s established UK stores rose 3% over the Christmas period, according to analysts’ estimates, and slipped less than 2% in the four months to 5 January, despite a dismal period for many clothing chains.

The company, which does not sell online, is already the UK’s biggest clothing retailer in terms of volume. In value terms, it is number three, but is creeping closer to second-placed Next. Marks & Spencer still holds on to the top spot, despite its recent poor performance.

Primark’s good showing over Christmas defies a general shift in shopping away from the high street to online that is affecting rivals from John Lewis to New Look, prompting a slew of store closures across the UK.

John Bason, the finance director of Primark’s owner, Associated British Foods, said the chain’s combination of low prices, tight stock control and fashion hits such as faux sheepskin jackets and animal print dresses enabled it to cut back on discounting despite a step up in promotions by rivals.

Shares in the company rose nearly 6% on Thursday after the company revealed that Christmas at Primark in the UK exceeded expectations despite a warning of challenging conditions in an early December update.

ABF, which has a large food business, also flagged signs of improvement in sugar prices but warned of ongoing losses at its bakery business, which owns the Kingsmill, Allinson and Sunblest brands.

The update pointed to strong sales at its US Primark stores and a pick-up in Spain. The company is looking for new US stores to add to the nine it has already opened and two more already planned.

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Sales at established stores worldwide fell by 2% over the four-month period but profit margins increased, partly because of the strengthening of the pound against the dollar, which is used to pay suppliers in the far east.

Bason said: “Not having the cost of servicing home delivery does allow us to have these lower price points. I know people love the convenience of that but the cost around it is massive.”

He said Primark communicated with potential shoppers online via social media, garnering 13m followers on various platforms including 5m on Instagram.

“Primark stores are fun and not down in the mouth with no money spent on them. People are out there to have fun rather than being on your own in your house looking at a computer,” he said.